First US Bancshares Reports $1.8 Million Net Income for Q1 2025

First US Bancshares, Inc. reported a net income of $1.8 million, or $0.29 per diluted share, for the first quarter of 2025, reflecting a decrease from $2.1 million, or $0.34 per diluted share, in the same period of 2024. The company's total interest income for the quarter was $14.0 million, down from $14.3 million year-over-year, while interest expense also decreased slightly to $5.1 million from $5.2 million. This resulted in a net interest income of $8.9 million, a decline of 1.6% compared to the previous year. The net interest margin for the quarter was 3.53%, down from 3.65% in the prior year, primarily due to yield reductions on loans following a decrease in the federal funds rate.

Total assets increased by 2.4% to $1.127 billion as of March 31, 2025, compared to $1.101 billion at the end of 2024. The growth in assets was driven by a $25.3 million increase in total loans, which rose to $848.3 million, primarily due to a $41.3 million increase in consumer indirect loans. However, the company experienced a decrease in total deposits, which fell by $10.6 million, or 1.1%, to $961.9 million, attributed to reductions in both interest-bearing and non-interest-bearing demand deposit accounts.

In terms of operational developments, First US Bancshares continues to focus on enhancing its banking services and expanding its footprint. The company is renovating a banking center in Daphne, Alabama, which is expected to open by the fourth quarter of 2025, marking its entry into the Daphne/Mobile area. As of March 31, 2025, the company employed 147 full-time equivalent employees, reflecting its commitment to maintaining a strong workforce to support its operations.

The company recorded a provision for credit losses of $0.5 million for the first quarter of 2025, compared to no provision in the same period last year, reflecting the growth in loan volume. The allowance for credit losses on loans and leases stood at $10.4 million, or 1.23% of total loans, slightly down from 1.24% at the end of 2024. Nonperforming assets decreased to $5.0 million, or 0.44% of total assets, from $5.5 million, or 0.50%, at the end of the previous quarter.

Looking ahead, First US Bancshares remains cautious amid ongoing economic volatility, including inflationary pressures and fluctuating interest rates. The company continues to monitor market conditions closely and is focused on maintaining adequate liquidity and capital ratios to support its growth strategies. The bank's capital ratios remain above the "well-capitalized" thresholds, with a common equity Tier 1 capital ratio of 11.08% as of March 31, 2025.